Originally Posted by
m3113n1a1
Han Solo is right. You fly whatever aircraft you can make the most money on. If I had two houses for rent, one paid off that earned 3000 a month cash flow and another with a mortgage that earned 2000 a month cash flow, and I can only have one tenant, am I going to let the paid off house sit empty or the mortgaged house?
The reason md88s will be parked is because of higher operating costs due to fuel/mx, not because of how the debt is structured.
You are missing the point. The original thread was about capacity reduction. Delta can reduce capacity cheaper than other airlines because they have aircraft that incur no costs while parked. (MD88)That means that management is more likely to reduce capacity than AMR or UAL.
In your example if you wanted to get higher rents you could easily afford to leave a house vacant and pull it from the market reducing capacity and driving up rates. If you had a large monthly payment on both house you would be more inclined to keep both houses rented even at reduced rates. AMR and UAL will be more inclined to keep their houses rented. Delta less so.